Voice of the people (letter).

A Health Tax

May 22, 1994|By Robert E. Lynch.

NORTHBROOK — I would like to accept Deborah Mihm's challenge ("Companies should share health care costs," Voice of the people, May 1) for a better alternative to employer mandates in guaranteeing decent health coverage "for all Americans."

Before doing so, however, let me point out that any of the mandates or tax-funded health reform programs will greatly increase our nation's welfare state-already considered by most to be the principal factor driving this country's decline.

No employer has the legal, moral or ethical duty to provide health-care coverage. However, there are clear financial benefits to employers in doing so.

Employer-paid health-care insurance was initiated to circumvent wage and price controls. This practice has continued principally as a tool to attract the best workers and only minimally with altruistic goals in mind.

Generally the costs were recovered by tax deductions and price increases, which are both borne in full by all of us. If mandates are enacted, the benefits to employers will cease and most will offer only the minimal coverage requirements. That's right, a reduction in benefits for the vast majority of Americans.

Here's the alternative: Put an end to all employer-paid coverage and enact a direct employee income tax to pay for health insurance.

This will eliminate middleman cost and will allow those employers who wish to either offer supplemental coverage, increase salaries or reduce prices as they see fit.

Even though this is a better alternative than Mihm's, it is nothing but a welfare program. It's plain that the best alternative of all is to foster the individual's responsibility for his own care by cleaning up insurance industry practices along with tort reform.